Mondelez takes minority stake in non-HFSS doughnut brand Urban Legend

Mondelez International’s corporate venture capital arm SnackFutures Ventures has taken a minority stake in non-HFSS doughnut maker Urban Legend.

Founded in 2021 by former Graze CEO Anthony Fletcher, Urban Legend uses custom designed and patented air frying technology to create doughnuts with 30%-75% less sugar, fat and calories than their traditional counterparts.

Each of Urban Legend’s 12 products – including those with creamy fillings, icings and frostings – provides 200 calories or less. Today, the range is sold in standalone bakery cabinets across 200 UK stores.

Urban Legend has already secured investment from Samworth Brothers – which became a minority stakeholder in March – along with Eka Ventures, the Good Food Fund and JamJar Investments.

The tie-up with Mondelez would help it accelerate on its journey towards “radical reformulation” in fresh bakery, said Fletcher.

“Having done R&D on this category for four years, that I don’t think there’s a product in it that cannot be made HFSS compliant at the same level of indulgence as the as the incumbent.”

The partnership with Mondelez would help the brand “get there sooner and have a bigger impact”, Fletcher added.

SnackFutures global head Richie Gray said the partnership was “very interesting for us from a strategic point of view”, because Mondelez did not yet play in fresh bakery outside its licensing business.

While Urban Legend will continue to operate as its own entity, “we would envisage that we’ll provide engagement and support on the technical side with our R&D teams”, Gray added.

“There may be some opportunities for a bit of product collaboration as well – that’s something that we’ll explore.”